A newly launched senior living investment and operating company has plans to acquire distressed assets in a pipeline targeted at $500 million over the next roughly five years.
The company, Endeavor Senior Living, launched on Aug. 1. But it already has five deals in the works and a number of others under letter of intent, according to COO Evans Adrian.
Endeavor’s growth strategy centers on acquiring and operating distressed or underperforming senior living communities, then breathing new life into them through renovations, rebranding and new systems and technology.
“We’re ready to step in right away,” Adrian told Senior Housing News. “All of our systems and processes and team members are in place.”
The company’s strategy is exemplified in one of its newly acquired communities in California, where it is investing $2.5 million in turning the community around. Changes include an interior design overhaul and the addition of new technology to improve staff efficiency and processes.
“We’re going to put in the capital to make it bright and shiny and match our brand,” Adrian said.
Adrian, one of Endeavor’s three founders, comes to the operator-owner with experience in marketing, sales and operations. He is also the former executive director of an assisted living and memory care community in Denver, and he is licensed to operate assisted living communities and skilled nursing facilities in multiple states.
Adrian described the new company as “uniquely positioned between an investment firm and an operator.” And that’s to do with his fellow partners in the company, who all represent a cross-section of various industries and talents.
Joining Adrian is Chief Investment Officer Drew Ostransky, who is a former director of investments for MorningStar Senior Living; and Managing Partner Kyle Beard, who has a long career as a real estate investor and formerly was president of a behavioral health operating company in Denver.
“With that skillset … being owner-operators is what we want to be,” Adrian added. “And we want to partner with people that have similar visions to transform the industry.”
The company currently has a “solid mix” of financial partners specializing in both distressed debt and more stabilized deals, he added. If all goes according to plan, the company plans to scale up with new deals in the near future.
“There’s not much that would scare us away, apart from maybe a facility that’s been sitting empty for like three years that needs a ton of work,” Adrian added.
As the senior living M&A market continues to tilt toward buyers, Adrian said the company is seeing no shortage of attractive opportunities for growth. In the cards for the company next is the announcement of a new flagship community, with more to come not long after that.
“Short-term, we’re going to be announcing our portfolio in the early stages,” he said. “And I’m looking forward to showing the world what we’re capable of doing.”
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